TIM COHEN: Gold mining industry has been down so long it’s hard to tell how bad things are
For all the gold companies, the issue has been how to exit SA. It’s a depressing thing but it’s the truth
SA gold companies have been in the wars for so long it’s hard to get a perspective on how bad things are.When things go from good to bad, or even bad to good, you know all about it. But how do you distinguish between very bad and very, very bad? How much worse is very, very bad compared with very bad? It’s hard to tell.It’s reminiscent of the title of the famous counter-culture novel by Richard Farina Been Down So Long it Looks Like Up to Me. I think the novel title was turned into a blues song. If it wasn’t, it should be.The stock prices of the companies give you some indication. On a one-year scale, Gold Fields is 38% down, Sibanye is 60% down, AngloGold Ashanti is 13% down and Harmony is (hallelujah!) only 9% down.For all the gold companies, the issue has been how to exit SA. It’s a depressing thing but it’s the truth. The combination of huge cost increases, constant labour turmoil, legislative uncertainty and a viciously hostile political environment have made it an operating ni...
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